Gold prices plunged sharply at the opening of Asian trading on November 4, with spot gold falling more than USD 45 overnight to USD 3,980 per ounce (equivalent to a loss of about 1.5 million VND per tael).

Gold prices have surged by hundreds of dollars, and experts say that sharp rises followed by corrections are normal. What has caused both global and domestic gold prices to fall and how long will the downward trend last?

Tran Thi Hoan, 40, from Lao Cai province, has been identified as the ringleader of two large-scale operations that smuggled over 546 kilograms of gold, valued at more than USD 49 million, from China into Vietnam.

As gold prices have surged and supply has become scarce, gold black markets are booming on social media, posing high risks of scams. Many residents in Hanoi have flocked to their hometowns to ‘hunt for gold’.

As gold prices continue to skyrocket in Vietnam, consumers are shifting from traditional SJC gold bars and gold rings to lower-purity 98% gold, also known as gold 980, due to persistent supply shortages.

Authorities have uncovered two major gold smuggling networks that trafficked more than 546kg of gold - valued at over $48 million - from China into Vietnam through the Lao Cai border.

The State Bank of Vietnam (SBV) held a seminar in Hanoi on October 15 to discuss the establishment of a gold exchange.

The new centralized gold exchange will help unlock gold reserves, improve transparency, and strengthen market oversight.

The export tariff for gold or silver products has been reduced from 1% to 0%, according to a recent Government decree.

Global gold rally continues as central banks and retail investors drive prices toward USD 4,000.

Several new regulations take effect in October, including a policy requiring gold transactions valued at VND20 million or more per day for a single customer to be conducted through a payment account.

Experts have suggested that taxes should not be applied to gold used for weddings or consumer jewelry, but only to income from gold bullion investments.

Vietnam’s central bank establishes a quota-setting council for gold imports and exports, led by the Deputy Governor.

Vietnam’s National Competition Commission penalizes gold traders and TPBank for misleading practices.

Vietnam will allow commercial banks to produce and import gold bars from October 10 under new government regulations.

Taxing income from gold trading has been deemed appropriate by experts to curb speculation and short-term trading. However, the tax policy needs to be adjusted to differentiate between legitimate savings and speculative activities, they said.

Some propose a 20% tax on profits from gold trading, while others suggest a lower rate based on total transaction value.

Financial experts support taxing gold profits but urge the government to exempt long-term savings and small-scale sales.

Before the Government Inspectorate was tasked with overseeing the gold trading sector, the State Bank of Vietnam (SBV) had already identified numerous violations by major companies.